Karnataka HC Sets Aside Forest Property-Mark Rejection After Officials Demanded Documents And Rejected Firm’s Renewal Bid The Same Day

The petitioner company, represented by its Resolution Professional while undergoing CIRP, applied on 22 March 2024 to renew its property mark registration for 2024–25.

After seeking information about wood procured, used, and in stock, the Forest Department issued further requests on 29 June 2024 for licences, permits, and forest-produce details.

On that same day, following a spot inspection, respondent No. 3 rejected the application, citing the petitioner’s failure to provide the requested material.

The petitioner challenged the rejection as having been made without adequate time or a hearing.

Rule 153(2) of the Karnataka Forest Rules, 1969 provides that the Deputy Conservator of Forests may refuse or defer registration of a property mark after giving the affected person an opportunity of being heard.

The decision therefore had to comply with that procedural requirement and with the principles of natural justice, including a meaningful opportunity to provide the requested material before an adverse decision was made.

Respondent No. 3 sought documents and information on 29 June 2024 and rejected the application that same day for non-production, despite the petitioner having no sufficient time to comply.

No personal hearing was afforded, and the impugned memorandum did not explain the necessity for immediate rejection.

The Court held that this procedure denied the opportunity required by Rule 153(2) and violated natural justice.

It permitted the petitioner to provide the requested documents and information within two weeks of receiving the certified order, and directed respondent No. 3 to reconsider the application and pass appropriate orders in accordance with Rule 153 within four weeks after receiving them.

The existing interim order was to remain in force until the application was decided.